CONTROL OF MANUFACTURE ORDINANCE, 1959 (Government policy on setting up new factories to produce goods specified in First and Second Schedules)

Mr Low Guan Onn asked the Minister for Finance (a) what is the policy of the Government in regard to the setting up of new factories to produce goods or classes of goods specified in the First and Second Schedules to the Control of Manufacture Ordinance, 1959, where those goods are already being produced by existing factories; and (b) whether would-be investors will be allowed to set up new factories to produce such specified goods, on the condition that they can promote an export market for a proportion of their total production.

Mr Tang See Chim (for the Minister for Finance): Mr Speaker, Sir, the licensing of new factories to manufacture products on the Control of Manufacture list where these products are already being produced by existing factories would depend on the volume and capacity production of such factories as the local market could bear. The Government is prepared to consider the issue of new licences if it is established that the production of existing manufacturers is not sufficient to cater for the needs and requirements of local consumers. However, the Government would like to satisfy itself that new manufacturers have the necessary managerial, technical and marketing expertise required for successful operation of their enterprise. In all cases where a small number of licencees are authorised, a condition is imposed in regard to maintenance of quality as well as price variations.

With regard to the second part of the question, Sir, the Government is always willing to give sympathetic consideration to any proposals for the setting up of plants to produce goods for export markets. In line with this policy, the Government is prepared to consider licensing new manufacturers if they are in a position to export their products overseas or, in the case of international manufacturers, they already have existing markets to which they have been exporting from other locations. It is, however, difficult to enforce compliance with undertakings given in respect of export performance. Accordingly, such undertakings are treated with reserve.